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IFRS 3 Business combinations

IFRS 3 Business Combinations provides guidance on the accounting treatment on the acquisition of a business.

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IFRS 3 Business Combinations

This factsheet explains how to determine whether a transaction is within the scope of IFRS 3 and provides an overview of the acquisition method. It also provides a summary of the standard’s disclosure requirements.

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Summary and timeline

Looking for the synopsis? Our IFRS 3 summary and timeline features information on current proposals and a timeline of IASB updates.

Recent amendments

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These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.

Related IFRIC interpretations

IFRIC 17 Distributions of Non-cash Assets to Owners IFRIC 17 addresses the accounting for dividends of non-cash assets, including those where there is a cash alternative.
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments IFRIC 19 addresses the accounting by an entity which issues equity instruments in order to settle, in full or part, a financial liability.
SIC 32 Intangible Assets – Website Costs SIC 32 addresses the appropriate accounting treatment for costs at each stage of the development of a website.

UK reduced disclosures – FRS 101

UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Our FRS 101 page gives more information on which entities qualify and the criteria to be met.

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These resources are available exclusively to Corporate Reporting Faculty subscribers, ICAEW members and students.

ICAEW factsheets and guides

The Corporate Reporting Faculty's annual IFRS factsheets provide a more detailed discussion of recent IFRS amendments.

Exclusive IFRS 3 Business Combinations
  • Helpsheets and support
  • 19 Jul 2023
  • PDF (500kb)
This factsheet provides an overview of how to identify a business combination and recognition and measurement of the consideration transferred, the identifiable assets acquired, the liabilities assumed, any non-controlling interest and any goodwill arising.
Exclusive 2022 IFRS Accounts Factsheet
  • Helpsheets and support
  • 08 Aug 2023
  • PDF (415kb)
This factsheet highlights new and modified requirements and includes practical tips on the implications of the changes.
Exclusive 2024 IFRS Accounts
  • Helpsheets and support
  • 22 Aug 2024
  • PDF (474kb)
This factsheet highlights new and modified requirements for preparers of IFRS accounts, dealing primarily with IFRS Accounting Standards with mandatory application for annual periods beginning on or after 1 January 2024.

eBooks

The ICAEW Library & Information Service provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Exclusive Business combinations
  • eBook chapter
  • 2023
  • PKF International Ltd
  • Wiley Interpretation and Application of IFRS Standards
Updated edition providing a detailed reference guide with practical examples, and IFRIC interpretations and directions. This chapter discusses IFRS 3.
Exclusive Business combinations
  • eBook chapter
  • 2021
  • Ernst & Young LLP
A global perspective on technical accounting issues with worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IFRS 3.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Other resources

Thematic review: Business combinations
  • Website
  • FRC

Review of annual reports highlighting good practice. It covers accounting and disclosure requirements, management commentary, fair value, consideration, statement of cash flows, significant judgements and estimates, and deferred taxation. Includes case studies with extracts from real annual reports and accounts.

International GAAP 2024: The global perspective on IFRS
  • Website
  • EY

Detailed guide on interpreting and implementing IFRS, with illustrative examples and extracts from financial statements. The manual is available online (free registration required) as part of EY Atlas Client Edition.

IAS Plus
  • Website
  • Deloitte

Overviews of each international accounting standard, with a history and timeline of key events and amendments.

IFRS model accounts and disclosure checklists Many illustrative financial statements and checklists are available online, providing example presentation and disclosure formats for preparers of IFRS accounts. We’ve compiled a list of regularly updated free sources for model accounts.

Further support

Financial reporting helpsheets
Corporate reporting resources

Practical resources including factsheets, online guides and webinars on financial and non-financial reporting.

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